ADOPTION OF HIGH YIELDING WHEAT VARIETIES AND ITS IMPACT ON FARM INCOME OF SMALLHOLDER FARMERS IN MAO-KOMO DISTRICT OF BENISHANGUL-GUMUZ REGION, ETHIOPIA

Abstract

Wheat yield is low in Ethiopia. Adoption of high yielding wheat varieties is one of the measures presumed to enhance wheat yield in the country. However, there are several socioeconomic and institutional factors that limit the adoption of high yielding wheat varieties and intensity of market supply of wheat produce. The objectives of this study was to analyze the adoption of high yielding wheat varieties, estimate the impact of adoption on farm income and evaluate intensity of market supply of wheat produce in Mao-Komo district of Benishangul-Gumuz, Ethiopia. This study used cross-sectional data collected from sample of 174 farm households selected through two-stage stratified random sampling techniques. Descriptive statistics and econometric models were used to analyze the data. Probit model was employed for adoption, propensity score matching (PSM) applied to analyze the impact of adoption on farm income, and Tobit model for intensity of market supply of wheat produce. The probit model result depicted that land holding size, tropical livestock unit, access to agricultural information, frequency of extension contacts, off-farm income, and perception of farmers toward attributes of high yielding wheat varieties affected the likelihood of adoption of high yielding wheat varieties positively and significantly. But, sex of household heads, and affiliation to organizations had negative and significant effect on the likelihood of adoption of high yielding wheat varieties. The result of the PSM estimation showed that adoption of high yielding wheat varieties has significant impact on farm income of treated households as compared to the control groups. The treated households had earned farm income of about 21452 ETB per year while the untreated smallholders earned farm income of only 11141 ETB. The average treatment effect on the treated (ATT) of farm income of adopters is greater than non-adopters that has brought about 9 % increases in farm income of smallholders. The Tobit regression results revealed that educational level of household heads, land holding size, distance to main road, and lagged price of high yielding wheat produce were positively and significantly determining the intensity of market supply of wheat produce. However, sex of household head and distance from market center had negative and significant influence on intensity of market supply of high yielding wheat produce. The findings suggest that the government and stakeholders should need to focus on improving farm land and livestock productivity, strengthening the provision of education, and frequency of extension visits, encouraging participation in non-farm activities, creating reliable information and awareness towards farmers’ perceptions, and improving infrastructures in the area. Finally, further support of high yielding wheat varieties adoption should be given due attention for its impact on farm income generation and market supply of wheat produce by smallholders.